Wolrd of Project Managment with CaseStudy 1
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This document discusses project management concepts and presents a case study about United Screen Printers (USP). USP is evaluating six proposed projects for the upcoming year, with a budget of up to 10% of annual sales ($700,000). The document outlines each project proposal and recommends funding the purchase of a new large press ($160,000) and pursuing ISO 9000 certification ($250,000-$300,000) as they would increase productivity and trust while staying within budget. A risk management budget of $240,000 is also recommended.
Wolrd of Project Managment with CaseStudy 1
- 1. The World of Project Management Moustafa Mohamed Ali Mo’men Mohamed Ibrahim Mohamed Megahed Khalf Mina Abdo Hakeem
- 2. Key Points • What is a project ? • Project Management Vs. General Management . • The three goals of a project . • The life cycle of a project . • Methods of selecting projects . • Risk Management . • Project portofilio process .
- 3. What is a project ? • A project is a set of tasks , each task is specific and unique with a specific deliverables for a specific need or purpose . • Characteristics of a project • Unique • Have Scpecfic Deliverable • Timely • Why a project ? • To fix the reponsability and authority to achieve organizational goals on an individual
- 4. Common Characteristics of Projects • Multidisciplinary . • Complex : People with different kinds of Knowledge. • Conflict : Inseparable companions • the budget & schedule • client desires and project team. • between project team’s members.
- 5. Project Management Vs. General Management PROJECT MANAGEMENT GENERAL MANAGEMENT Everything is an exception Manage by exception Project Manager must be creative , flexible and problem solver It just need a good project manager Scope(Project deliverables ) and due date determine its plan Need a good planning to achieve success It can cross the organization boundaries Rarely crossing organizational boundaries
- 6. Negotiation • Why ? • So that he can get the cooperation of other departments in the organization to supply him with technology, information , resources … etc • Win-Lose situations • Like buying a car or a house the less you pay the less profit the seller gets. • Win-Win situations • It’s a mandatory within the organizations.
- 7. The three goals of a project
- 8. Life Cycle of a project • S Shape goes from SLOW Start to Fast Then Slow • J Shape goes from SLOW to Fast
- 9. Selecting Projects • There are two primary methods for selecting a project • Nonnumeric selection • Numeric selection
- 10. Nonnumeric Selection Methods • The Sacred Cow • Just do it .. !? • The Operating Necessity • Is it necessary .. !? • Comparative Benefits • Divide these project to categories like (Good – Fair – Poor ) if a one group have more than 8 projects keep dividing like (Good plus – Good minus ) till no groups have more than 8 projects.
- 11. Numeric selection • The Payback Period . • Net Present Value (NPV) .
- 12. Risk Management • uncertainties found during projects : • Project completion time • the availability and costs of key resources • the timing of solutions to technological problems • the whims of a client • the actions taken by competitors
- 13. Project portofilio process • Project portofilio process (PPP) attempts to link the organization’s projects directly to the goals and strategy of the organization. • also a means for monitoring and controlling the organization’s strategic projects .
- 14. Steps for The Project Portfolio Process • • • • Establish a Project Council . Identify Project Categories and Criteria . Collect Project Data . Assess Resource Availability . • Reduce the Project and Criteria Set . • Prioritize the Projects within Categories . • Implement the Process .
- 15. Case Study United Screen Printers
- 16. Introduction • United Screen Printers (USP) produces a wide range of decals for displaying promotional messages on fleet vehicles vehicles(including delivery vans, eighteen - wheelers, and aircraft). • Although it is one of the oldest forms of printing, screen printing is superior to most of the more modern approaches..why ?!!! • Screen printing works by blocking out areas on a silk screen .
- 17. Problem • USP is about to begin its annual evaluation of proposed projects. Six projects have been proposed as described . • USP currently has annual sales of approximately $7 million. It typically allocates up to 10 percent of sales to these types of projects.
- 18. 1-Purchase new large press • There is currently a three - and - a-half to four - week backlog in the screen printing department • USP ’ s total lead - time is 4 to 6 weeks instead of average lead - time of 3.5 to 4 weeks (13 % early – 38% on time -49 %late) , 75 percent of the backlog is waiting for press 6. • press 6 is in dire need of replacement parts but USP has been unable thus far to locate a source for these parts . • cost for purchasing a new large press is $160,000 • Achieve jobs 50 % to 100 % faster than press 6, the payback period for a new large press would be one year.
- 19. 2-Build new headquarters • company needs to have a strong corporate identity. • improve operating efficiencies. • Cost $4 million so too risky !! increase the company ’ s debt.
- 20. 3-Pursue ISO 9000 certification • Customers assurance . • improve its processes . • $250,000 to $300,000 and would take one year to complete
- 21. 4-Develop formal procedure for mixing inks • a highly specialized skill. • consumes 2 – 3 hours of the team leader ’ s time each day(annually $25.000). • focus on developing ink formulas to make this task: more routine. less specialized. Subjective. • estimated cost $10,000.
- 22. 5- Purchase and install equipment to produce four-color positives in - house • lead-time to have positives made by an outside supplier is typically one week and costs $1,500 to $6,000. • Estimated cost of purchasing the equipment is approximately $150,000 plus $25,000 for installation and training. • cost of producing positives in house are estimated to be $375 per job. • When produced in - house, the lead-time is approximately an hour - and - a half.
- 23. 6- Purchase inkjet printers • six inkjet printers at a cost of $140,000 will provide the equivalent capacity of a new large screen printing press. • The major disadvantage is that compared to the screen printing process, the outdoor durability is more limited. • inkjet printers are more economical for small orders, while screen printing presses are more economical for large orders.
- 24. Questions
- 25. 1-Agregate plan
- 26. Criteria • • • • Increase the trust between the incorporation Increase productivity Don’t cross the limited budget Risk management budget
- 27. Recommended projects • • • • Purchase new large press Pursue ISO 9000 certifi cation Total Cost = $700.000 – $460.000 = $240.000 Risk managemnt cost : $240.000
Editor's Notes
- #3: Project vs. non-Project : *
- #5: Edit this slide !Edited …
- #8: Three ImportantQuestions : 1- Is the project on time or early ? 2- Is the project on or under budget ? 3- Is the project delivering the agreed-upon requirement specifications ? These 3 elements the client agree when contracting the project .
- #9: The example given in the book : Building a house …
- #12: I0 : initial investment Ft : net cash flow in period t .k : required rate of return .n : # of periods .
- #13: So , a big need must be there for FLEXABILITY & Wise Tradeoffs .